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A CUSIP number is a unique identifier assigned to securities, helping track and settle trades in the financial markets. It's essential for brokers, clearinghouses, and regulators, offering efficiency and clarity in identifying stocks, bonds, and other financial instruments.
CUSIP stands for Committee on Uniform Securities Identification Procedures. It's a standardised 9-character alphanumeric code used primarily in the U.S. and Canada to uniquely identify securities like stocks and bonds.
Its main purposes are:
Security identification
Trade settlement facilitation
Regulatory tracking
Preventing trade errors
Most listed equities and bonds in the U.S. are assigned a CUSIP, making it a central part of the financial infrastructure.
A CUSIP number follows a 9-character format:
Issuer Code (First 6 characters) – Identifies the company or issuer.
Issue Number (Next 2 characters) – Denotes the type of security.
Check Digit (Final character) – A computed digit to validate the code.
Example: 03783310 05
037833 = Apple Inc.
10 = Common stock
5 = Check digit
The CUSIP system was developed in the 1960s by the American Bankers Association (ABA) to streamline security tracking. It's now governed and managed by CUSIP Global Services (CGS), operated by FactSet.
It was adopted as an ANSI standard to maintain consistency across financial institutions and exchanges.
A CUSIP number doesn’t reveal stock details directly but acts as a unique tag that:
Identifies the issuer and security type
Enables automated trade settlement
Tracks securities in brokerage accounts and depositories
Simplifies portfolio management systems
Here’s how investors use CUSIPs and potential limitations to note:
Helps brokers, fund managers, and clearing firms track holdings
Ensures accurate trade settlement and reporting
Assists in regulatory filings and audit trails
Not always accessible to retail investors
May not be used outside North America
Does not describe security features (like dividend yield or coupon)
CUSIP numbers are generally accessible through the following:
Brokerage statements
Company filings (like prospectuses or 10-K forms)
Electronic Municipal Market Access (EMMA) for municipal bonds
CUSIP Global Services (CGS) (subscription-based)
Here’s how CUSIP, ISIN, and CINS stack up against each other:
| Identifier | Region | Format | Use Case |
|---|---|---|---|
CUSIP |
U.S./Canada |
9-character |
Domestic securities |
ISIN |
Global |
12-character |
International use |
CINS |
International |
9-character with special prefix |
For non-U.S. securities |
While CUSIP is local, ISIN incorporates it and expands usability globally. CINS is a CUSIP variant used for international issues.
Apple Inc. — 037833100
Microsoft Corp. — 594918104
New York City Bonds — vary by issue and maturity
These codes are used by institutional investors to ensure precise asset tracking.
Dummy CUSIPs: Temporary placeholders used before a security is finalised.
TBA CUSIPs: Used in mortgage-backed securities where specific securities are "To Be Announced."
These help streamline the trading of instruments not yet fully defined or issued.
CUSIP numbers are fundamental to:
Settlement automation
Trade accuracy
Security tracking across platforms
Standardising cross-broker operations
They are primarily relevant for institutions, while retail investors may encounter them less directly.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
It stands for Committee on Uniform Securities Identification Procedures.
Nine characters: 6 for issuer, 2 for issue type, 1 check digit.
CUSIP Global Services (CGS), under ABA oversight, assigns and maintains them.
CUSIP numbers are widely used by institutional investors for identifying securities. Retail investors may have limited visibility depending on the source of information.
Most U.S.-listed stocks and bonds do. Exceptions include private placements.
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